Kfin Tech stock is up over 160% this year — Here is why Jefferies sees nearly 25% more upside

The shares of a SaaS based solutions provider for investment managers have made investors 162% wealthier in 2024 (year-to-date), outperforming the benchmark index Nifty 50 which has risen 11% during the period. Global brokerage Jefferies remains bullish on the stock and increased the target price.

Jefferies has raised the target price on Kfin Technologies to ₹1530, implying it sees a potential upside of more than 23% in the stock from the closing price of December 17. The stock traded over 3% higher at ₹1,273.20 on NSE at 12:21 pm.

The brokerage cited the non-deal roadshow (NDR) of the company, which indicates that its businesses are doing well on the back of robust capital activity and market share gains. The brokerage can see 15-20% growth in the medium term, even as current growth is stronger.

It added that the opportunity in international business is more exciting as Kfin Tech is getting licenses to launch in Southeast-Asian markets and can pursue newer ones.

Jefferies also believes that merger and acquisition (M&A) in this space can speed up progress and the management seems quite balanced.

The company is Jefferies’ top pick in the mid-cap financial space, with a ‘buy’ rating.

Eight out of 13 analysts tracking the company’s stock have a ‘buy’ rating, three recommend a ‘hold’ and two suggest a ‘sell’, according to Bloomberg data.

Last month, CAMS and KFintech announced the creation of a joint venture to operate MF Central as a standalone entity. This new entity will oversee technology, sales, and marketing for MF Central, enhancing mutual fund services for investors and intermediaries.

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